Mobility fintech company Moove raises €95 million amid global expansion
Moove appears to be one of the biggest projects around that’s disrupting the mobility sector. The company has just raised around €95 million ($105 million) in its most recent round of investment.
A recent Series A2 investment round has seen Moove raise approximately €95 million ($105 million), priming the company for expansion across Europe, Asia and around the world. The investment round was led by existing investors such as Speedinvest, Left Lane Capital and thelatest.ventures, along with support from new names like AfricInvest, Latitude, Kreos Capital and MUFG Innovation Partners.
Moove: disrupting the mobility sector
Moove was founded by Ladi Delano and Jide Odunsi, two bright minds of Nigeria’s burgeoning start-up scene. The company has a clear aim: providing entrepreneurs in the mobility sector with revenue-based vehicle financing services.
The company currently operates in many African countries, a continent where vehicle financing has proved to be relatively challenging, with low access to credit. Currently, Moove offers its services in Lagos, Accra, Johannesburg, Cape Town, Nairobi and Ibadan.
With this new round of investment, Moove aims to expand into a reported seven new markets, in Europe, Asia and Middle East and North Africa.
Supporting the growth of the gig economy
The gig economy notably accelerated during the global COVID-19 pandemic. Despite the fact that more and more services support gig economy workers, it has been reported there may not be the right tools or upfront investment capital to access them.
As reported by Tech EU, “in the case of ride-hailing, logistics, or last-mile delivery services, each one of these operations requires a vehicle of some type”. However, if an entrepreneur does not own a vehicle, then progress can be stunted. There are options to finance a vehicle, however this can be difficult without a minimum credit score.
As previously mentioned, Africa is a continent with a reportedly low level of access to credit. This means that less than 5% of all vehicles are purchased via options. As well as this, vehicle ownership in the continent is roughly 4.4%, as indicated by research published by LMC Automotive. This is compared to 91.8% of vehicles in Europe being purchased with a financing option. Vehicle ownership in Europe is reported to be around 57%.
Using alternative credit to oil the mobility sector
Moove was launched relatively recently, in January 2020 to be exact. The company improves access to vehicle-base services by integrating its unique technology with ride-hailing, logistics, and instant delivery marketplaces. The company also uses an alternative credit system, which offers clients with new options to finance vehicles, calculated using a percentage of the customer’s weekly revenue. In Nigeria, the company offers this method along with interest rates between 10% and 23%. Tech EU estimates that banks offer comparable interest rates between 20% and 25%.
Africa is a region that is experiencing exponential growth, especially in the technology and start-up industries. Business is booming for Moove, registering over three million trips completed with vehicles that the company has financed.
Aside from financing options, the company also has a progressive approach to its operations. It has been reported that 50% of Moove’s customer base is women. 60% of loans are used to purchase electronic or hybrid vehicles. Drivers are also supported with banking services through the company’s Moove wallet system.
Co-founder Jide Odunsi told Tech EU that “these ideals are at the core of what we do as we continue to build a sustainable and impact-driven global business”.
“We’re delighted to be backing Moove again as they grow the business across the world”, said Stefan Klestil, General Partner at SpeedInvest.